Richard Maddox

A special report from the BMO Real Financial Progress Index reveals concerns about the cost of living and economic uncertainty have not cooled Canadians’ summer travel plans, with 62% planning on spending the same amount or more on vacations and travel this summer compared to 2024. Nearly four in five Canadians (77%) plan on travelling this summer, with an average budget of $3,825, which includes the cost of flights, hotels and accommodations, rentals, gas and food.

The survey examined how Canadians are preparing for their summer vacation plans and found:

• 59% are opting to travel within Canada to save money.
• More than half (55%) have altered their vacation plans due to rising costs and inflation.
• 46% have reduced their spending throughout the year to afford their summer vacation plans.
• Nearly a third (32%) admit to compromising their long-term savings to afford travel plans.

The BMO Real Financial Progress Index also explores Canadians’ summer spending plans and forecasts:

• Warming up for wedding season: 34% plan on spending the same amount or more on weddings for family and friends this summer compared to last year. Over half (54%) do not plan on spending on weddings for family and friends this summer.
• Storm of celebrations and steady spending: Two in five (39%) plan on spending the same amount or more on special events, including graduations and showers this summer than they did in 2024. Less than half (48%) do not have plans to spend on special events this summer.
• Family activity budgets feel the heat: 29% will spend the same amount or more on summer camps and childcare compared to 2024. 61% have no plans to spend on summer camps and childcare this year.
• Sawdust and sunshine: 42% will spend the same amount or more on home renovations. 44% do not have home renovation plans during the summer.
• Sunny with a chance of splurging: Nearly a third (30%) plan on spending the same amount or more for a large purchase including a home, a car, a boat, etc. 57% do not plan on making a large purchase this summer.

https://about.bmo.com/bmo-survey-summer-travel-spending-heats-up-despite-economic-concerns/